Unit 26 - Managing Business Information P4 describe the legal issues an organisation must consider in using business information
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Unit 26 - Managing Business Information
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PEARSON (PEARSON)
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BTEC Level 3 National Business Student Book 2
Unit 26 - Managing Business Information P4 describe the legal issues an organisation must consider in using business information. Please leave a review if you found this useful, thank you.
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Unit 26 - Managing Business Information
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March 14th 2020 Legal Issues
The Data Protection Act 1998
The data protection act is a legislative act that the
companies have to follow when they receive personal data
from their customers. Such a when the customers give out
their details such as their address and passwords. The
employees of the organization have to make sure that they
keep this information safe and secure and make sure that it
doesn’t get leaked to any other organisations or to any third
parties as this could create some serious issues. This act
covers data that is stored on computers and or on paper
about customers and employees of businesses. Companies
have to follow specific set of rules of the data protection act.
Failing to follow this act can lead to organisations being
finned. For example, in 2011 when Sony failed to meet the The computer misuse act
data protection act, many customers’ personal details were
leaked such as names, passwords, account passwords etc. The computer misuse act is a law that deals with the crime of
Sony got fined millions for not following the data protection assessing data on the computer systems with authorization. “First
act, it is important for the organisations to follow this act in introduced in 1990, the Computer Misuse Act prohibited anyone
order to make sure that all the customers’ personal from gaining unauthorised access to a computer, it also
information and other details are safe. encompassed unauthorised modification of a computer's files.” It
is designed to control computer crime and internet fraud. The act
Tesco hold a lot of details from their customers, such as prohibited anyone from gaining unauthorised access to a
their account details such as payments when customers
computer and unauthorised modification of the computers files. It
purchase from their website, when customers contact them
covers crimes such as hacking, harvesting data and unauthorised
by phone or email, downloading and using Tesco’s app and
encryption of data. There are three levels penalties for people that
when using their club card. The types of information that the
break with law. The first penalty applied if someone gains access
organisation may keep is the customers’ names, their phone
numbers, their emails, their shopping habits and other to a computer in which they did not have the permission to do so.
personal information. This information is used by Tesco to The penalty involves two years in prison and a fine of 5,000.
contact the customers and for marketing reasons. Calls are Tesco follow this act by ensuring that their website is safe from
recorded to prevent fraud and improve customer service. hackers, and that their customers’ details are safe, for example
Tesco have to ensure that they keep this personal
account details such as contact information and payment.
information of their customers in order to follow the data
Different departments within Tesco hold different information
protection act. Tesco share personal data to some third
such as the finance will hold information on the company’s
parties in order to ensure that they are meeting the
regulatory requirements. However, Tesco only share finances, and sales will hold personal information on customers
information if they have the permission from their and HR would hold information on employees. If stolen, this
customers, and only if they must, and where sharing the information can be used for various things such as selling it off or
information to the third parties is part of the data protection stealing funds from customers’ accounts. This is why Tesco ensure
act. that their computers are secure from anyone assessing sensitive
data.
Sometimes Tesco have to deal with sensitive personal data,
such as medical conditions, when following the data Tesco states about the computer misuse act on their terms and
protection act, Tesco ensures that they ask the customers conditions page on their page, making it clear what cannot be
for their consent to this data. Tesco data protection policies done on their website and what are the circumstances of
involve keeping their customers personal data for 10 years committing any of the crimes, such as reporting to the law
once their accounts are closed, they keep banking enforcement and ceasing the right to use their website. “We will
application data for up to 7 years and personal data for 3 report any such breach to the relevant law enforcement
years after last activity with the customer. Tesco also states authorities and we will co-operate with those authorities as
that in some cases they may keep data for longer periods
required (including but not limited to, disclosing your identity to
than stated, if it requires investigation.
them). In the event of such a breach, your right to use our website
will cease immediately.” Tesco train their employees about their
polices when dealing with information on internet as most other
companies do, by encouraging them to avoid accessing websites
that are not safe, and following the correct security measures.
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